The village of Budy was shown on Schubert’s map of 1826-1840. However, it is signed there as Lady, possibly a misprint, or possibly the name of the village, which was later changed to Budy. Further in written sources the village is mentioned in 1905, not as a settlement, but as a forest fire department of Osowiec parish, 1 inhabitant lived there. In 1919 - 1939, it was part of Poland, as part of the village Paluszczyn, Ilow commune.